Suppose, you have bought a bond with face value of Tk. 1,00,000 and annual coupon rate is 12%. The bond will be matured after 8 years. If the current market price of the bond is Tk. 85,000, what is the Yield to Maturity (YTM) of the bond ?

ABC Bank wants to get liquidity support from the central bank against the lien of Treasury Bond (T-bond) currently it is holding. The central bank allows liquidity support maximum 95% of the face value of T-bond. The rate of borrowing from central bank is 10%. If ABC Bank applies for 7 days liquidity support against T-bond of face value Tk. 10,00,000, calculate: (i) Maximum fund ABC Bank will receive from central bank, and (ii) Repayment amount for ABC Bank on the maturity of this deal to get back the underlying T-bond.